Advantages of Minimum Wage

Advantages of Minimum Wage
• Reduce the income gap between poor and rich Minimum wage helps to close the income gap between the rich and poor. Although the society still has a significant difference, the minimum wage at least puts a floor in the gap so it does not develop wider. Narrowing this gap is important to maintaining a population with equal freedoms.

In the short term, minimum wage is not effective to reduce the income gap between poor and rich. But in the long term, because of minimum wage, employees can satisfy their basic standard of living, thus their children can concentrate on their studies. Then they will not be low-tech employees who will fight for more wage and position. Therefore, their family will be out of poverty level.

• Protect employees’ wage and dignity In a high unemployment rate circumstance, employees cannot be able to negotiate with employers about their wage and benefits, thus employers beat down employees’ wage and benefits. Therefore, if government establishes minimum wage law, that can prevent this condition.

• Increase standard of living for lower earners
Minimum wage can help low earners gain a higher standard of living, because they can gain stable wage.

• Maintain social stability
Minimum wage protects low earners’ wage that might able to decline the possibility of social problems caused by low income, for example family violence.

• Improve economy development
Because employees gain stable wage, that can increase their purchasing power. Therefore, that can able to improve each of industries development and increase employment opportunities.

Disadvantages of Minimum Wage
• Increase the cost of business
If government establishes minimum wage, enterprises will increase the cost of business, which will generate many social and economy problems.

You May Also Find These Documents Helpful

...This essay will give an overview of the advantages and disadvantages of the minimumwage. There are many different opinions about whether a national minimumwage is a good or a bad thing for our economy and people individually and by looking into various different resources and researching thoroughly, a conclusion will be drawn to hopefully provide a fair and unbiased review.
In the UK, there are 3 different bands when it comes to minimumwage, if you are between 16 and 17 years old you are entitled to no less than £3.68, workers over 18 years of age but under 21 are entitled to £4.98, and over 21s are entitled to £6.08. This basically means that if you are employed by a company, they have to pay you the specific hourly rate that you are entitled to.
Employees benefit from a minimumwage as it gives them an income, a fair rate of pay that will able them to afford to live, buy things and filter money back into the economy.
There are different pros and cons concerning different people when it comes to the minimumwage. Firstly though, we will be looking into the benefits regarding the employees themselves who earn the money. From the financial aspect, a minimumwage allows employees to work and earn more money than they would be receiving if they were on social benefits (Job Seekers...

...MinimumWage
In the United States MinimumWage is approaching record lows. Even with recent increases inflation is one of the main reasons that workers are being paid less for labor than they were back in the Seventies. There are about 3 million workers in the United States that worked full time year round last year and still fell below the National poverty level. If everyone earns exactly the same amount of money, then the income distribution would be perfectly equal. If no one earns any money except for one person, who earns all of the money, then the income distribution would be perfectly unequal. In a normal society Income Distribution is usually somewhere in the middle of perfectly equal or unequal. When a small number of people start receiving a large portion of the income in a society, the government tries to find ways to redistribute income. Governments try to stop the rich from getting richer, and the poor from getting poorer in order to achieve a good balance in income distribution. Minimumwage laws are a way that the federal and state governments balance income distribution.
2.
MinimumWage is considered a price floor. Minimumwage laws determine the lowest price possible that any employer must pay for labor. In the traditional minimumwage model the quantity of supplied labor is...

...Daniel Drugge
Political Economy
October 6 2013
News article: http://www.nytimes.com/2013/02/13/us/politics/obama-pushes-for-increase-in-federal-minimum-wage.html?pagewanted=all&_r=0
American workers will have a 1.75$ increase in their hourly wage by the end of 2015, as President Barack Obama recently called to raise the federal minimumwage from $7.25 an hour $9.00 an hour. This increase in the minimumwage of American citizen aims to help people with a low annual wage: cooks, employees of the janitorial industry and many others working these necessary menial occupations are set to benefit. The white house estimates that this measure will boost the wage of approximately 15 millions low-income workers.
Raising the minimumwage, according to the White House press, will have some positive effect for low-income families; however, many companies are opposed to raising the minimumwage. A higher wage will have a direct impact on the cost of business. Some economists argue that higher minimumwage will result in an increased unemployment percentage. Although minimumwage laws can fix hourly pay, they cannot guarantee jobs. Employers are not willing to pay a worker more than the value of the additional product that he...

...Minimumwage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimumwage is now a staple in 90 percent of countries in the world (Minimum). Even with these minimums, a person’s lifestyle is hard to maintain. Sustainability, in my opinion, is the ability to keep or maintain a certain amount of physical or mental property. In this light of sustainability, minimumwage is not a sustainable amount of money in which to survive with a basic quality of life. There are many supporters and objectors to the minimumwage debate. Supporters say that increasing minimumwage increases the workers earning power and wages. Objectors say that increasing minimumwage only leads to unemployment due to small companies’ inability to pay workers. Also the increased inflation rate of goods only hurts the economy, which leads to many jobs being lost, mainly the jobs held by minimumwage patrons. Although this is a heated debate there is one thing to which both sides agree; something needs to be implemented so that workers are not exploited by businesses. Economists are exploring the viability of minimum...

...Minimumwages
A minimumwage is the minimum amount of compensation an employee must receive for performing labour. In economic term, minimumwages is the price floor of the pay of the labour that set by the government. The minimumwages rate normally was fixed by legal authority as such, it is illegal to pay an employee less than the minimumwage. Our economic transformation goal is to make Malaysia a high-income nation by 2020, with a per capita income of US$15,000 a year, however there are still around 30% of the people in Malaysia are still living below the poverty line. The general purpose for the implementation of the minimumwages is to ensure that the wages of a labour is able to meet the basic standard of live which is be at or above the poverty line so that they can survive with their salary. In Malaysia, The Prime Minister YAB Datuk Seri Najib Abdul Razak announced the rates of national minimumwages in Peninsular will be RM 900 while Sabah, Sarawak and Labuan will be RM800. This implementation of minimumwages in Malaysia was the decision under the National MinimumWages Consultative Act 2011. The national minimumwage is the first ever in Malaysia. This...

...﻿
Should We Raise the MinimumWage to the Average Pay Rate?
April Alston
Melisa Fennern
Sharon Grady
Nicole Huffman
Terika White
University of Phoenix
BCOM/275
September 30, 2013
Michelle Maldonado
“Should We Raise MinimumWage to the Federal Average Pay Rate?”
On the United States Department of Labor website it states that in 1938 it was decided that a federal minimumwage should be set. When it was set, it was set for the amount of $0.25 an hour. Now as of 2013 it is $7.25 an hour. (Grossman 1978. Washington’s minimumwage is the highest at $9.19 an hour, it joins its 18 other states with a higher wage. Almost half the states agree with the minimumwage; five have wage lower and another five do not even have a minimumwage. There is clearly a divide on the thoughts of raising minimumwage to make things more even. What our group wants to question here today is the raise of minimumwage to the federal average pay rate. In the United States after researching 426,448,460 people in more than a thousand occupations the average pay rate would be $20.60. (United States Department of Labor 2013) Thomas Sowell says it best,
`“Unfortunately, the real minimumwage is...

...
Comprehensive Analysis on MinimumWage in Indonesia
“Comprehensive Negative Impacts Analysis of MinimumWage for DKI Jakarta”
[pic]
Andhika Putra Sudarman
1106055822
Fakultas Hukum Universitas Indonesia
Depok
“If the MinimumWage of DKI Jakarta is set to Rp10.000.000,00, will everybody prosper?”
Laborers in DKI Jakarta demonstrating for an increase of minimumwage[[1]][[2]] is not a rare thing to see. The reason is because they can no longer meet their needs with their current wage. However, minimumwage has been raised for many times since it was first introduced in the 1970s. So, what exactly is going wrong in our beloved country, or the problem is within the minimumwage itself?
In this essay, the vision of why minimumwage should not be put into implementation in DKI Jakarta shall be given, for not only minimumwage law do not bring welfare to the people, instead it will cause unemployment and limit the workers’ productivity. In other words, the problem lies in the minimumwage itself.
MinimumWage Does Not Solve Poverty
If the purpose of the minimumwage is a protection to the workers so that they can prosper, it is precisely with the...

...The minimumwage is the lowest rate at which a worker can be played. There she minimumwage laws pegged to hourly, daily and even monthly rates, although U.S. law is pegged to an hourly wage. Also, a minimumwage law usually makes it illegal for a person to sell his labor for less than the minimumwage rate
The general purpose of the minimumwage is to guarantee a living wage to all workers who work a standard period of time, whatever that might be. In theory, any labor who works 40 houses a week on minimumwage should be at or above the poverty level line. However, the minimumwage has not kept up pace with the inflation in the United States and the cost of living increases more than the wage increases that are given and that way behind the standards
Minimumwage laws were first started in Australia and New Zealand in the 1890s.The first minimumwage to be law was in Massachusetts in the 1912 but it only applied to children and women. The federal minimumwage was established in 1938 by the Fair Labor Standards Act. Initially set at 25 cents an hour, the wage has been raised periodically to reflect changes in inflation and productivity....